The more the law affords business people insulation from personal liability, the more business risks they tend to take.

Question

Quizplus · Accepted Answer

This statement is generally true. The less personal liability business people have, the less risk they perceive and thus, they tend to take more risks in their business endeavors. This is because if the business fails, they will not be personally liable for the debts and losses incurred. Therefore, having limited personal liability can encourage entrepreneurs to take bigger risks and start new ventures.

The More the Law Affords Business People Insulation from Personal